The 2017 financial statements of Lowell Company report total revenues of $2,000 million, accounts receivable of...

The 2017 financial statements of Lowell Company report total revenues of $2,000 million, accounts receivable of $100 million for 2016 and $110 million for 2017. The company's accounts receivable turnover for the year is: A. 16 days B. 19 times C. 19 days D. 16 times E. None of the above

Solutions

Expert Solution

B. 19 times

Account receivable turnover ratio		=	Net revenues/Average account receivable
		=	$ 2,000	/	$ 105
		=	19	times

Account receivable turnover ratio tells that how many times account receivable is collected in the year.



Working:
			Millions
Accounts receivable for 2016	a		$ 100
Accounts receivable for 2017	b		$ 110

Total	c=a+b		$ 210

Average	d=c/2		$ 105

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

Financial Statements A list of accounts for Lloyd Inc. at December 31, 2017, follows: Accounts Receivable...

Financial Statements A list of accounts for Lloyd Inc. at December 31, 2017, follows: Accounts Receivable $56,359 Net purchases $61,608 Advertising Expense 12,900 Retained Earnings, January 1, 2017 28,252 Capital Stock 50,000 Salaries Payable 650 Cash 22,340 Net sales 111,760 Dividends 6,000 Transportation-In 375 Income Tax Expense 1,450 Utilities Expense 1,800 Income Tax Payable 1,450 Wages and Salaries Expense 23,000 Inventory: Wages Payable 120 January 1, 2017 6,400 December 31, 2017 5,900 1. Determine cost of goods sold for 2017....

Below are the financial statements of ABC Company 2018 2017 cash 120,000 44,000 accounts receivable 100,000...

Below are the financial statements of ABC Company 2018 2017 cash 120,000 44,000 accounts receivable 100,000 90,000 inventory 220,000 242,000 equipment 220,000 120,000 a/d equipment 80,000 60,000 land 820,000 1,020,000 total assets 1,340,000 1,396,000 accts payable 220,000 180,000 common stock 220,000 200,000 r/e 900,000 1,016,000 Income statement sales 420,000 cogs 180,000 oper expenses 80,000 depreciation exp 40,000 loss on sale land 100,000 income 100,000 Further information a) ABC sold some stock during the year b) ABC only had 1 transaction...

Given the following Financial Information Answer the following question: 2017 2018 Cash 2,000 189,100 Accounts Receivable...

Given the following Financial Information Answer the following question: 2017 2018 Cash 2,000 189,100 Accounts Receivable 2,000 2,020 Inventory 8,000 8,080 Prepaid Assets 3,000 3,030 Other Assets 4,000 4,040 Total Current Assets 19,000 206,270 Net PPE 20,000 4,000 Intangibles 10,000 10,000 Total Assets 49,000 220,270 Accounts Payable 8,000 8,080 Salary Payable 6,000 6,060 Notes Payable 3,000 3,000 Total Current Liabilities 17,000 17,140 Long-Term Debt 40,000 40,000 Total Liabilities 57,000 57,140 Common Stock 80,000 80,000 Retained Earnings -88,000 83,130 total equity...

aaaaa bonded company reported the following on its 12/31/2017 financial statements: Accounts Receivable (net of a...

aaaaa bonded company reported the following on its 12/31/2017 financial statements: Accounts Receivable (net of a $16,000 Allowance) of $104,000 Consider that during 2018 Layer Cake accrued bad debt at 3% of credit sales, reported actual customer write offs of $21,000, credit sales of $800,000, and cash collections from customers as payment on account of $789,000. Additionally, the controller determined (from a detailed 12/31 aging analysis) that it would be appropriate to report the receivables on the 12/31/2018 balance sheet...

Using the attached financial statements please calculate for 2017 and 2016: Days in Accounts receivable, Days...

Using the attached financial statements please calculate for 2017 and 2016: Days in Accounts receivable, Days Cash on hand, equity financing percentage, cash flow to debt percentage, times interest earned, fixed asset turnover ratio, current asset turnover ratio, average age of facilities. Please show all work and calculations Balance Sheet Assets 2017 2016 Current Assets Cash and Cash equivalents $82,815 $59,696 Assets limited as to use, current portion 5,327 5,088 Accounts Receivable Patients, less allowance for doubtful accounts ($25,302 in...

Refer to the consolidated financial statements and notes in the 2017 financial report of Wesfarmers on...

Refer to the consolidated financial statements and notes in the 2017 financial report of Wesfarmers on its website, http://www.wesfarmers.com.au/docs/default-source/reports/j000901-ar17_interactive_final.pdf?sfvrsn=4 and answer the following questions 1.How much cash has been raised by interest-bearing loans in the most recent financial year? How much of such loans has been repaid? How do these amounts compare with the previous year? 2. Determine whether any of the non-current liabilities are secured. 3. Are there any non-current provisions? If so, what, in very general terms, do...

Refer to the consolidated financial statements and notes in the 2017 financial report of Wesfarmers on...

Refer to the consolidated financial statements and notes in the 2017 financial report of Wesfarmers on its website, http://www.wesfarmers.com.au/docs/default-source/reports/j000901-ar17_interactive_final.pdf?sfvrsn=4 and answer the following questions: Have the current liabilities of Wesfarmers increased or decreased over the year? By how much? What classes of liabilities are recorded under the classification “Current Liabilities”? What are the major liabilities of Wesfarmers at the end of the financial year? What items are included under the heading ‘Provisions’ in the ‘Current Liabilities’ section of the statement...

Refer to the consolidated financial statements and notes in the 2017 financial report of Wesfarmers on...

Refer to the consolidated financial statements and notes in the 2017 financial report of Wesfarmers on its website, http://www.wesfarmers.com.au/docs/default-source/reports/j000901-ar17_interactive_final.pdf?sfvrsn=4 and answer the following questions: Have the current liabilities of Wesfarmers increased or decreased over the year? By how much? What classes of liabilities are recorded under the classification “Current Liabilities”? What are the major liabilities of Wesfarmers at the end of the financial year? What items are included under the heading ‘Provisions’ in the ‘Current Liabilities’ section of the statement...

The financial statements report the financial health and progress of a company. Select a financial report...

The financial statements report the financial health and progress of a company. Select a financial report from online and explain what information it provides for decision making.

JPJ Corp has sales of $ 1.14 million, accounts receivable of $ 53 comma 000, total...

JPJ Corp has sales of $ 1.14 million, accounts receivable of $ 53 comma 000, total assets of $ 5.11 million (of which $ 2.92 million are fixed assets), inventory of $ 147 comma 000, and cost of goods sold of $ 604 comma 000. What is JPJ's accounts receivable days? Fixed asset turnover? Total asset turnover? Inventory turnover? If JPJ Corp is able to increase sales by 11.7 % but keep its total and fixed asset growth to only...

Subjects